Government Relations
Hot legislative and regulatory issues that the NAIS Government Relations Team is tracking on behalf of its members.
Court Rules on Enforceability of Arbitration Clauses in Student Enrollment Agreements
November 3, 2009
Many schools have been looking more closely at arbitration agreements in their enrollment contracts, other schools have already implemented them. Are they always enforceable? Have their been any cases? This article from Liebert Cassidy Whitmore sheds light on a recent decision from California involving an independent school.
Unions, Independent Schools, and the Employee Free Choice Act
October 30, 2009
Many schools have expressed concerns and confusion about the Employee Free Choice Act, known to some as the "card check" legislation. Schools that have never even thought about unions are wondering if they should be more aware of this important area of law. This article will help you learn more.
State Regulation of Private Schools
September 3, 2009
In July 2009, the Office of NonPublic Education within the Department of Education updated its publication on the state-by-state regulation of private schools. This publication walks through a myriad of standard regulatory requirements in each state, making it a must-have reference item for independent schools. Click here for this free publication!
The Basics of Federal Gift and Generation-Skipping Transfer Taxes
September 1, 2009
Grandparents and others often want to pay tuition without triggering gift and other taxes. This publication will help schools get a grasp of some of the big issues.
Wage and Hour Law: A Guide for Independent Schools
August 20, 2009
The Wage and Hour law, otherwise known as the Fair Labor Standards Act (FLSA) can be one of the most challenging areas of compliance for schools. Who is hourly? Who is salaried? What about stipends for coaches? How do we compensate dorm parents? Learn about all of these topics and more in this helpful guiden for independent schools.
Compensation Issues for School Heads
August 1, 2009
This document was developed to help schools better understand various types of fringe benefits and deferred compensation that heads often receive. It also includes a section on intermediate sanctions, which are tax regulations that can severely penalize the head of school and the board if compensation is not thoroughly studied before it is implemented.
Employee Educational Expenses
August 1, 2009
Schools can encourage faculty, administrators, and staff to enhance their education background by providing tax-free financial support through an educational assistance program. This monograph addresses the types of expenses that may be covered by EAPs and the requirements for creating and maintaining a tax-qualified EAP.
Tax Forms 101
August 1, 2009
Although NAIS schools are not subject to federal income tax, they are subject to myriad reporting requirements imposed by the IRS. Here are eight common tax forms applicable to independent schools.
Understanding Unrelated Business Income Tax
August 1, 2009
This brief, yet comprehensive monograph explains the ins and outs of unrelated business income tax (UBIT).
Red Flag Rules Updated November 2009
July 9, 2009
This updates NAIS's October 2008 advisory, “New Federal Regulations Require Implementation of an Identity Theft Program." The Red Flag rules, issued by the Federal Trade Commission, may apply to independent schools under certain circumstances, including tuition payment plans.
State Regulation of Fundraisers
July 1, 2009
This monograph discusses states imposed registration and disclosure requirements on schools and other charities that engage in fundraising activities or hire professional solicitors. Although the requirements imposed on fundraisers vary from state-to-state, most jurisdictions have adopted comprehensive charitable solicitation acts that may affect schools.
That's a Lot of Money! Should I Take It, or Leave It?
May 7, 2009
A must read for all independent schools. This publication, updated in 2009, describes many laws that schools must comply with, as well as laws that are triggered when federal financial assistance is received through programs and other means.
2009 NAIS Legislative Agenda
December 10, 2008
In addition to providing products and services to its members, NAIS monitors legislation and takes positions on public policy issues that impact members (please see www.nais.org for more information). In 2009, the organization’s government relations office will focus on the following priorities.
The ADA Amendments Act of 2008 and Independent Schools
October 31, 2008
On September 25, 2008 the ADA Amendments Act of 2008 was signed into law. This law dramatically impacted independent schools in employment and admissions areas as of January 1, 2009. Read this helpful advisory to get a glimpse of the changes.
Withholding Student Records When Parents Fail to Pay
October 10, 2008
One of the most common questions that schools have is whether the school can withholding a student's transcripts when a parent fails to pay the tuition amount due. This publication lays out many of the key considerations in this area as well as an explanation of how the laws in this area may differ from state to state.
Potential Lead Exposure from Artificial Turf
October 7, 2008
On June 18, 2008, the Center for Disease Control issued a warning about potential exposure to lead through artificial turf. Schools with artificial turf or those exploring using artificial turf will want to read this helpful document for more information.
NAIS Submits ADA Comments
August 15, 2008
On August 15, 2008, NAIS filed comments with the Department of Justice on proposed ADA regulations that would require alterations to various aspects of independent school campuses. Final regulations are likely to come in the winter of 2008-2009.
403(b) Retirement Plan Changes in Effect January 1, 2009
August 11, 2008
The IRS has released final regulations requiring schools to take steps to bring their 403(b) plans into compliance by January 1, 2009. Are you ready? Will you be? Read more to find out!
Hitting the Campaign Trail: Independent School Staff and Election Campaigns
July 22, 2008
This campaign season is sure to be an active one. Many of our teachers are interested in participating in the process. One teacher in particular has a paid sabbatical for which she is planning. The teacher wants to know if she can use that sabbatical to volunteer for a presidential campaign. Can she? Read on to find out!
Bylaws: Your School's Corporate Constitution
May 22, 2008
Do your bylaws seem a bit long to you? Or a bit short? Overly prescriptive? Have you been charged with reviewing them, but have no idea what you are looking for? Read this helpful publication on the various terms, purposes, and common issues that arise within independent school bylaws.
Who Me? Antitrust Concerns for Independent Schools
March 28, 2008
The independent school community has a very collegial atmosphere, one that tries to support and encourage its members. However, sometimes the sharing that goes on can raise legal concerns. Read this article to learn more about antitrust violations and independent schools.
Early and Phased Retirement Options for Schools
March 13, 2008
Schools are facing many challenges with the upcoming retirement of so many faculty and staff. This Q&A provides guidance on phased and early retirement incentive programs for schools.
The ADA and Independent Schools
March 6, 2008
NAIS receives many disability related questions every year. These questions address issues relating to students, employees, parents, and facilities. In response to the pervasive interest of NAIS schools, this publication is designed as a short primer on the most applicable federal disability law, the Americans with Disabilities Act (ADA). This document is a 2008 update of the original.
Truth in Lending Act
February 22, 2008
The Truth in Lending Act may impact your payment plans and your ability to collect tuition. Are you making the disclosures required under federal law? Read this helpful article to find out.
I'll See You in . . . Arbitration?
February 6, 2008
Schools have been revisiting their contracts in recent years and are looking more closely at abitration provisions. The terms can help a school avoid the front page threats brought on my courtroom antics, as well as lower the amount of time and money spent on litigation. What is it? What are the benefits? Read this helpful piece to learn more!
Independent School Guide to Employee Handbooks
January 11, 2008
Are you revisiting your school handbooks? Wondering what handbook policies other schools have in place, and why? This complete guide will help you on your way to updating, revising, and rethinking your handbook.
The Predator Next Door
November 7, 2007
State registration of sex offenders has been in place for several years now, with online registry sites available to all who care to search. Many schools have found themselves faced with the question: What do you do when a registered sex offender lives near your school?
Final IRS Regulations on Qualified Dependent Care Expenses
August 28, 2007
The IRS has released final regulations on qualified dependent care expenses. These new regulations may impact the school's dependent care flexible spending account plans.
Minimizing the Legal Risks in Reductions in Force
August 15, 2007
Reductions in force can be painful and emotionally charged events...and legal claims can result if individuals feel they have been treated unfairly. Learn how to reduce your legal risks.
Race Considerations in Admissions and Financial Aid Decisions
July 19, 2007
This publication is designed to help independent schools navigate the issue of race in admissions, financial aid, and scholarship decisions within the context of federal law.
Deferred Compensation and the Internal Revenue Code §409A
July 18, 2007
Many schools have expressed concern about the new deferred compensation regulations under 409A. Will it impact your school's deferred compensation plans? Do schools trigger 409A by allowing academic year employees to opt-in to a 12-month payment plan? Read this helpful article to learn more.
Bundles of Joy: Managing Pregnancy at School
July 10, 2007
It can be a bit conflicting to have new pregnancies within your staff at school. How do you handle maternity leave from one academic year to the next? What do you do when a student gets pregnant? Read this article for helpful information!
Enrollment Contracts: Enforceability and Provisions
June 4, 2007
Are you thinking about updating your enrollment contract? Wondering what other schools have in theirs? What about the enforceability of your provisions? This publication will help you answer these and other questions.
Small Business Health Plan Legislative Points
June 1, 2007
NAIS has developed this document to communicate with policymakers the importance of small business health or association health plans. NAIS's policy priorities are outlined. This document also explains how this type of health plan would effect independent schools.
Confirming Employment Status: The I-9 Form
May 26, 2007
The immigration Reform Control Act of 1986 requires all employers within 3 days of employment to verify the employment eligibility of all job applicants and ensure that all newly-hired persons are either US citizens of aliens authorized to work in the US. This form was updated in November 2007. This link to the USCIS website provides input on the changed in the form, frequently asked questions related to the I-9 form, and a link to the form itself.
International Diversity for NAIS Schools: Visas for Teachers and Students
May 21, 2007
Schools have long been interested in bringing foreign teachers and students to their halls. What kinds of visas are available? Where does a school begin? This article will help you learn more!
IRS Takes an Interest: Private School Market Segment Study and Approaches for Independent Schools
May 15, 2007
The IRS has recently tabled its private school market segment study, possibly for as long as a few years. However, the IRS's interest combined with that of Congress has left many schools wondering what they should be doing in these areas to shore up themselves for the future. This compendium of resources and basics will help get schools started.
Does Federal Law Require Notice of Your School's Financial Privacy Policy?
May 3, 2007
This monograph addresses how the Gramm-Leach-Bliley Act, a new privacy act, may affect independent schools. The act generally applies to schools that offer significant financial services such as loans. Read this piece to find out whether you need to be in compliance with this new act and the implementing regulations.
Education Records: Federal Privacy Requirements
May 3, 2007
This comprehensive document explains the requirements of the Family Education Rights and Privacy Act (FERPA). Schools that are interested in revisiting their student records policies or that are curious about whether FERPA applies to them will find some answers here. Schools seeking guidance on how to regulate access to educational records may also find this document helpful.
Mandatory Financial Information Safeguarding Provisions
May 3, 2007
The Gramm-Leach-Bliley Act (GLB) may require your school to enact a safeguarding policy and plan to protect the information your school receives. This helpful article will help you begin to get a handle on these requirements.
Wage Hour Conundrum: Nominal Fees for Volunteer Coaches
April 3, 2007
The Fair Labor Standards Act (FLSA) regulations from 2004 encouraged many schools to revisit their salaried and overtime determinations. One of the most frequent questions to come out of those revisions is whether schools may continue to pay nominal fees or stipends to volunteer coaches, either individuals from the community or from the employee ranks.
Nondiscrimination and Private Schools: The Publicity Requirements of Revenue Procedure 75-50
March 29, 2007
This monograph addresses IRS Revenue Procedure 75-50, which requires that each private school has a racially nondiscrimination policy regarding its students. The school must publicize its policy and must maintain records sufficient to demonstrate compliance. Originally prepared in 1999, this monograph was updated in 2007
NAIS Files Amicus Brief in Brentwood Academy v. TSSAA
March 27, 2007
NAIS filed an amicus brief with the Supreme Court on March 27, 2007. The brief addresses the First Amendment issues raised by the drafting and enforcement of a recruitment rule by a state actor. The First Amendment ramifications of this case could touch most state and federal programs in which independent schools voluntarily participate.
Records Retention in Independent Schools: What, How Long, and Why?
March 21, 2007
NAIS receives any number of legal and administrative calls over the year, but one of the front-runners in frequency relates to records retention. This document and its tables will help get you thinking about records retention for your school. This document includes information about the federal EDiscovery rules adopted in December 2006.
Your 403(b) Plan and Investment Fees
March 7, 2007
Over the past year there has been much attention paid to the reasonableness of fees being charged for the administration of retirement and other funds. Lawsuits have been brought challenging the adherence of the fund administrators to fiduciary duties they have to the fund participants. Read this helpful article to learn how your school can avoid this pitfall.
Tax Exclusion for Payment of Educational Expenses
February 28, 2007
A number of schools have received enquiries from families of current or matriculating students concerning the prepayment of tuition. This monograph provides suggestions on how a limited prepayment plan could be structured.
Why Didn't You Accept My Child? Admissions Decisions in Independent Schools
November 29, 2006
Many independent schools face a very similar set of rejection conversations every year, and as parents and students get more pressured, and the competition for college admissions gets more intense, schools are finding these conversations more and more challenging. Many schools want to know what, if anything, they can do to protect their process and their decisions
Amicus Brief for Free Speech
November 20, 2006
NAIS and the Council for American Private Education (CAPE) filed this brief in the First Circuit Court of Appeals on November 20, 2006. The case involves a statute and regulation in the Commonwealth of Puerto Rico governing the selection of textbooks by private schools. A district court has found that the statute and regulation in question violates the rights of private schools to free speech and academic freedom.
The New IDEA: Frequently Asked Questions
September 1, 2006
The Individuals with Disabilities Education Improvement Act of 2004 (IDEA) provides many more safeguards to ensure that private school children with disabilities can receive services through federal funds to assist them in achieving in the regular classroom. Many schools have questions about the IDEA. Here is a helpful publication with many of the frequently asked questions that schools raise.
Prepaid Tuition: Skipping the Gift Tax?
March 14, 2006
The Wall Street Journal recently wrote an article about the tax benefits of prepaying tuition to independent and other schools. What is this all about? Can we do it? Is this something new? Read this article for some helpful background!
Parent Behavior Clauses
January 31, 2006
Are you reviewing your enrollment contract? Wondering whether you should put in a parent behavior clause? Curious about the state of law surrouding these clauses? What are other schools doing? Read this document for some answers.
Proposed IRS Regulations: An End to Your Tax-Exempt Status?
January 4, 2006
The IRS has recently proposed new regulations that address the overlap between excess benefits being given to disqualified people (the head, board members, and others) and the school's tax-exempt status. Is your school's status on the chopping block? How can the school protect itself? Read this helpful article to find out more.
NAIS Amicus Brief on Behalf of Kamehameha
August 29, 2005
NAIS filed this amicus brief in the Ninth Circuit on behalf of the Kamehameha Schools. This brief relates to the different facts that courts should consider when reviewing an independent school's consideration of race or ethnicity within the admissions process.
Top Six Federal Programs: Are They Triggering Obligations for Your School?
July 14, 2005
Many independent schools participate in a variety of federal programs to some degree. What does that participation mean to your school? Does it trigger all the obligations found in NAIS's 2004 publication: That's a Lot of Money! Should I Take it, or Leave it? This publication walks through the top six federal programs that independent schools participate in and discusses the potential impact of that participation.
Sarbanes Shake-Out: Whistleblower Policies for Schools
July 13, 2005
Many schools have asked about implementing whistleblower policies after Sarbanes-Oxley. Is it necessary? What should it include? What does it look like? Are we at risk? Read this helpful article to learn more and see an example policy.
Car Donations: The New IRS Rules
June 3, 2005
On June 3, 2005, the Internal Revenue Service announced new rules on the tax treatment of automobiles donated to charity. These rules modify the former rules a bit and all schools and other nonprofits should be aware of the current deductibility now in effect. These rules were enacted pursuant to the American Jobs Creation Act (AJCA) passed into law in December 2004, which generally limits the deduction for such vehicles to the actual sales price of the vehicle when it is sold by the charity.
NAIS Guide to Intermediate Sanctions and Rebuttable Presumptions
May 19, 2005
Anyone reading the major national papers these days is aware of the scrutiny being brought to bear on executive compensation and nonprofits, as well as other kinds of transactions involving nonprofits and other interested parties. This guide will help you understand the IRS regulations relating to these transactions as well as how to protect your school from unwittingly providing excess compensation. A must read for all schools beginning a head search or renewing a contract.
Independent Schools and Federal Programs
March 14, 2005
In December 2004, the NAIS Government Relations Team surveyed independent schools to learn which federal programs schools participate in, and how many schools are participating in such programs. This article provides the results.
Hear No Evil: Employee References
November 1, 2004
Many schools wonder what exactly the risks are in providing negative references. Should the school just provide name, rank, and serial number? Read here to find out more.
Are They Really Volunteers?
Many schools now require that students commit to serving a specified number of community service hours in order to graduate from the school, or even to advance to the next grade. Are the schools inadvertently violating work laws in an effort to instill a sense of community responsibility? Read this article to learn more!
Audit Committee Charter Example
Have you been holding out on forming an Audit Committee? Not sure what one should do? Look at this helpful Ravenscroft School example!
But It's My Space! Independent Schools and the Internet
MySpace and similar sites have been raising many issues for independent schools. How do schools handle students on the Internet? How do we keep them safe? What steps can the school take? Read this helpful article to learn more....
Changes in I-9 Form
On November 7, 2007, the U.S. Citizenship and Immigration Services (USCIS) released an updated version of the I-9 form. This update brought the form in compliance with a 1997 law that required the exclusion of certain acceptable documents for work verification purposes. Click here to read the news release on these changes.
Charitable Incentives and Reforms: New Legislation
The Pension Protection Act of 2006 was recently passed by Congress and signed into law by the President. This act has several items of interest to independent schools, both in the realm of charitable giving and as some of the terms relate to retirement accounts and benefits. This article focuses on the charitable incentives and reforms that were included in this legislation.
Conflict of Interest and Confidentiality Example Policies
Are you trying to update your conflict of interest policy? What about your confidentiality policy? These example documents from Ravenscroft School will give you a few things to think about.
Copyright in the Classroom: What Every Independent School Teacher and School Administrator Should Know
Copyright issues for schools used to be so much easier. Now with technology making things faster and easier, do the same rules apply? What are the rules? Is everything fair use? Read this comprehensive guide for copyright in the classroom to learn more!
Electronic Documents in Independent Schools
Schools are often at a loss about how to approach their electronic records: files, e-mails, instant messages, and any other number of communications and documents. How do you organize the chaos? Should you even worry about it? This document will help!
Employer Obligations: If an Employee Is Called to Active Duty
Do you have employees that have been called to active duty in the military? Wondering about the USERRA employer posting requirements? This publication is an updated version of the original document reviewing employer obligations. The updates include new requirements in effect as of January 2006.
Example Code of Ethics
Are you looking for more information on creating a code of ethics for your school? This example provided by Ravenscroft School should help get you started.
Example Record Retention Policy
Are you trying to figure out how to approach your record retention policy? Wondering what other schools have done? Ravenscroft School has provided this helpful example policy.
Example Whistleblower Policy
Trying to comply with Sarbanes-Oxley, but not sure how to do it? This example of a whistleblower's policy from Ravenscroft School may help get you started on lowering your retaliation liability.
Exchange Students: New J-1 Regulations
The State Department recently released regulations that will affect exchange students coming to the US on J-1 visas. Is your school ready? Read this article to find out!
Family Medical Leave Act: New Regulations
On January 16, 2009, new regulations relating to the Family Medical Leave Act go into effect. These changes will require new kinds of leave, new posters, and new applications. Are you ready? Learn more here!
First Circuit Finds for First Amendment Rights of Private Schools
On April 11, 2007, the First Circuit Court of Appeals found for the Puerto Rico Private Schools Association in its challenge of a Puerto Rico statute and regulation that limited the discretion of private schools to determine their own textbook choices. NAIS filed an amicus brief in this case, supporting the Puerto Rico Association.
Flipping the Switch to Law Enforcement: Independent Schools and CALEA
Since January 2005, at the urging of the U.S. Department of Justice (DOJ), the Federal Communications Commission (FCC) has been using its regulatory powers under the Communications Assistance for Law Enforcement Act (CALEA) and moving towards requiring all providers of public technology networks to ensure that law enforcement, upon receiving a court order, would have a means by which to track user activity within the network. These new regulations may impact your school's network and accessing systems. Read this article to learn more.
HIPAA Redux: Revisiting HIPAA Privacy Regulations
This article provides schools with an update on various issues surrounding HIPAA privacy regulations that went into effect some time ago. It walks schools through some of the cutting edge HIPAA issues and provides checklists for schools to consider when asked for Protected Health Information.
HIPAA Regulations May Require Employer Action in New Health Plan Years after July 1, 2005
Schools will want to check their health plan documentation to ensure that they are in compliance with HIPAA regulations relating to various notices and other provisions for any new plan year starting on or after July 1, 2005. This means that any schools on calendar year plans will want to check now to ensure compliance as of January 1, 2006. Read this helpful document for more information.
HIPAA Security Regulations
The HIPAA security regulations went into effect on April 2005. Worried you missed something? Check out this article that runs you through the details.
HIPAA Wellness Regulations
Many schools have launched wellness programs, designed to encourage a healthier work force, either as part of or separate from their health benefits. These HIPAA regulations focus on the requirements of these wellness plans. This article from Fisher & Phillips should be helpful to schools that have implemented such plans, or are researching the possibility.
NAIS and NBOA File 990 Comments with IRS
This summer, the IRS released a draft of the new form 990, the related schedules, and instructions. NAIS and NBOA filed joint comments with the IRS on potential issues and solutions on the draft form.
NAIS Files Comments with IRS on Section 457(f) Plans
On October 15, 2007, NAIS filed comments with the IRS regarding the IRS's proposed guidance on 457(f) retirement plans.
School Handbooks: Beyond the Enrollment Contract
Are you starting a review of your school handbook? Are you curious about what other schools may have for a hazing policy? What about harassment policies? How much discretion do you really have? Read this publication for some helpful hints and example language.
Section 409A and the New World of Nonqualified Deferred Compensation
New legislation and regulations may impact your nonqualified deferred compensation arrangements. Make sure to read this article to gain helpful guidance and avoid inadvertently triggering unnecessary excise taxes.
Sexual Harassment and Retaliation: Recent Developments
Sexual harassment and retaliation caselaw has been changing. Schools should be aware of the potential impact these changes might have on how schools handle issues raised by staff and students. Read this helpful article to learn more.
Six Steps to Address Your School's Privacy Obligations
Are you worried about the privacy of your records? What about the financial information you have on your parents and donors? Who can access the student records and when? Read this helpful document to help you understand what your obligations are and how to approach them.
Supreme Court Revisits Retaliation
In 2006 the Supreme Court revisited what kinds of action may be considered retaliation against an employee who raises complaints in the workplace. This case has settled a rift in the circuits. Read this article to find out how it may impact your school.
The Admissions Process: What Can We Ask? What Should We Do?
The admissions process is full of questions, not the least of which is "What questions can we ask?" This article will help get your school thinking about its forms and interview process.
The Art of a Reduction in Force
The legal issues surrounding a reduction in force are difficult, but the emotional toll on a school and the individuals involved can be more difficult. How have schools done this in the past? What should you keep in mind? Read more to find out.
The New Form 990: Steps to Take Now!
The IRS has finalized the form 990 and its instructions. Are you ready? This new form contains many new sections and schedules, and will require more information than ever before. There are important steps that you will want to take soon to prepare for filing this form. Read here to find out more.
U.S. Department of Education Guidance on Innovative Programs Resources
Title V, Part A of the Elementary and Secondary Education Act provides for equitable participation of private schools in funds and resources under this title, generally known as Innovative Programs. Unless Congress acts otherwise, this title will no longer be funded after September 1, 2009. The Department of Education recently sent this guidance to the Chief State School Officers. The memorandum provides guidance on how local education agencies (LEA) should handle resources currently in private schools (such as projectors, books, etc.). Schools with such resources should be aware of the steps that the LEA may take once this funding is gone.
UPMIFA and UMIFA: Endowment Laws and Independent Schools
During times of financial uncertainty, schools need to be very careful about ensuring compliance with endowment laws. Are you an UPMIFA or UMIFA state? What does that mean? Do you always have to follow donor intent? These questions and more are answered in this article!
Virginia Graeme Baker Pool and Spa Safety: Is Your Pool in Compliance?
In December 2007, the Virginia Graeme Baker Pool and Spa Safety law was passed to make public pools safer for children. The law requires that public pools have their drains fitted with particular covers to reduce the number of deaths by entanglement or entrapment in the drains.
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